- Comparable store sales increase of 7.2%
- 28% increase in diluted earnings per share to
$2.06
- Record first quarter operating margin of
18.4%
O'Reilly Automotive, Inc. (the "Company" or "O'Reilly")
(Nasdaq:ORLY), a leading retailer in the automotive aftermarket
industry, today announced record revenues and earnings for its
first quarter ended March 31, 2015.
1st Quarter Financial Results
Sales for the first quarter ended March 31, 2015, increased $174
million, or 10%, to $1.90 billion from $1.73 billion for the same
period one year ago. Gross profit for the first quarter increased
to $987 million (or 51.9% of sales) from $878 million (or 50.8% of
sales) for the same period one year ago, representing an increase
of 12%. Selling, general and administrative expenses for the first
quarter increased to $637 million (or 33.5% of sales) from $591
million (or 34.2% of sales) for the same period one year ago,
representing an increase of 8%. Operating income for the first
quarter increased to $350 million (or 18.4% of sales) from $287
million (or 16.6% of sales) for the same period one year ago,
representing an increase of 22%.
Net income for the first quarter ended March 31, 2015, increased
$39 million, or 22%, to $213 million (or 11.2% of sales) from $174
million (or 10.1% of sales) for the same period one year
ago. Diluted earnings per common share for the first quarter
increased 28% to $2.06 on 103 million shares versus $1.61 for the
same period one year ago on 108 million shares.
Commenting on the Company's first quarter results, President and
CEO Greg Henslee stated, "We are extremely proud to once again
report another profitable quarter and a very successful start to
2015. Demand in our industry remained strong throughout the
quarter, and our relentless focus on providing unsurpassed levels
of service to our customers yielded a very strong 7.2% increase in
comparable store sales, which was on top of an increase of 6.3% in
the first quarter of 2014. Our ongoing focus on profitable
growth successfully translated these impressive top-line results
into a record first quarter operating margin of 18.4% and diluted
earnings per share of $2.06, which is a 28% increase over the first
quarter of 2014. The first quarter of 2015 represents our 25th
consecutive quarter of generating diluted earnings per share growth
greater than 15%. Our record breaking results are a testament
to Team O'Reilly's unwavering commitment to providing consistently
high levels of service to our customers each day, and I would like
to thank our over 69,000 Team Members for their hard work and
dedication to our ongoing success."
Mr. Henslee continued, "During the first quarter, we opened 67
new stores across 23 states, in both new and existing markets, and
we are on pace to achieve our target of 205 net, new store openings
in 2015. One of the keys to our long-term success has been our
robust, tiered, regional distribution network that supports our
stores with industry leading parts availability. We
continually evaluate the capacity in our distribution network and
look for opportunities to profitably improve the level of parts
availability at our stores. With our eyes on current
opportunities and long term growth, we are excited to announce the
expansion of our distribution network with the planned addition of
a Distribution Center just outside of San Antonio,
Texas. Texas continues to be a strong growth market for
O'Reilly, and we look forward to the enhanced level of service this
Distribution Center will add in the San Antonio and Austin metro
markets while also freeing up capacity in our three existing Texas
Distribution Centers. We are in the very early stages of this
project, and anticipate this facility will open in the second
quarter of 2016."
Share Repurchase Program
During the first quarter ended March 31, 2015, the Company
repurchased 0.6 million shares of its common stock, at an average
price per share of $207.50, for a total investment of $135
million. Subsequent to the end of the first quarter and
through the date of this release, the Company repurchased an
additional 0.3 million shares of its common stock, at an average
price per share of $216.85, for a total investment of $75
million. The Company has repurchased a total of 47.3 million
shares of its common stock under its share repurchase program since
the inception of the program in January of 2011 and through the
date of this release, at an average price of $93.58, for a total
aggregate investment of $4.43 billion. As of the date of this
release, the Company had approximately $570 million remaining under
its current share repurchase authorizations.
1st Quarter Comparable Store Sales Results
Comparable store sales are calculated based on the change in
sales for stores open at least one year and exclude sales of
specialty machinery, sales to independent parts stores and sales to
Team Members. Comparable store sales increased 7.2% for the
first quarter ended March 31, 2015, versus 6.3% for the same
period one year ago.
2nd Quarter and Updated Full-Year 2015
Guidance
The table below outlines the Company's guidance for selected
second quarter and updated full-year 2015 financial data:
|
For the Three Months
Ending |
For the Year Ending |
|
June 30, 2015 |
December 31,
2015 |
Comparable store sales |
3.0% to 5.0% |
3.0% to 5.0% |
Total revenue |
|
$7.6 billion to $7.8 billion |
Gross profit as a percentage of sales |
|
51.8% to 52.2% |
Operating income as a percentage of
sales |
|
18.3% to 18.7% |
Diluted earnings per share (1) |
$2.17 to $2.21 |
$8.42 to $8.52 |
Capital expenditures |
|
$400 million to $430 million |
Free cash flow (2) |
|
$700 million to $750 million |
|
|
|
(1) Weighted-average shares
outstanding, assuming dilution, used in the denominator of this
calculation, includes share repurchases made by the Company through
the date of this release. |
(2) Calculated as net cash
provided by operating activities less capital expenditures for the
period. |
Non-GAAP Information
This release contains certain financial information not derived
in accordance with United States generally accepted accounting
principles ("GAAP"). These items include adjusted debt to
earnings before interest, taxes, depreciation, amortization,
share-based compensation and rent ("EBITDAR") and free cash
flow. The Company does not, nor does it suggest investors
should, consider such non-GAAP financial measures in isolation
from, or as a substitute for, GAAP financial information. The
Company believes that the presentation of adjusted debt to EBITDAR
and free cash flow provide meaningful supplemental information to
both management and investors that is indicative of the Company's
core operations. The Company has included a reconciliation of
this additional information to the most comparable GAAP measure in
the selected financial information below.
Earnings Conference Call Information
The Company will host a conference call on Thursday, April 23,
2015, at 10:00 a.m. central time to discuss its results as well as
future expectations. Investors may listen to the conference
call live on the Company's website at www.oreillyauto.com by
clicking on "Investor Relations" and then "News
Room." Interested analysts are invited to join the
call. The dial-in number for the call is (847) 585-4405; the
conference call identification number is 39202473. A replay of
the conference call will be available on the Company's website
through April 22, 2016.
About O'Reilly Automotive, Inc.
O'Reilly Automotive, Inc. was founded in 1957 by the O'Reilly
family and is one of the largest specialty retailers of automotive
aftermarket parts, tools, supplies, equipment and accessories in
the United States, serving both the do-it-yourself and professional
service provider markets. Visit the Company's website at
www.oreillyauto.com for additional information about O'Reilly,
including access to online shopping and current promotions, store
locations, hours and services, employment opportunities and other
programs. As of March 31, 2015, the Company operated
4,433 stores in 43 states.
Forward-Looking Statements
The Company claims the protection of the safe-harbor for
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. You can identify
these statements by forward-looking words such as "estimate,"
"may," "could," "will," "believe," "expect," "would," "consider,"
"should," "anticipate," "project," "plan," "intend" or similar
words. In addition, statements contained within this press
release that are not historical facts are forward-looking
statements, such as statements discussing, among other things,
expected growth, store development, integration and expansion
strategy, business strategies, future revenues and future
performance. These forward-looking statements are based on
estimates, projections, beliefs and assumptions and are not
guarantees of future events and results. Such statements are
subject to risks, uncertainties and assumptions, including, but not
limited to, the economy in general, inflation, product demand, the
market for auto parts, competition, weather, risks associated with
the performance of acquired businesses, our ability to hire and
retain qualified employees, consumer debt levels, our increased
debt levels, credit ratings on public debt, governmental
regulations, terrorist activities, war and the threat of
war. Actual results may materially differ from anticipated
results described or implied in these forward-looking
statements. Please refer to the "Risk Factors" section of the
annual report on Form 10-K for the year ended December 31,
2014, for additional factors that could materially affect the
Company's financial performance. Forward-looking statements
speak only as of the date they were made and the Company undertakes
no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except share
data) |
|
March 31, 2015 |
March 31, 2014 |
December 31, 2014 |
|
(Unaudited) |
(Unaudited) |
(Note) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 473,646 |
$ 511,831 |
$ 250,560 |
Accounts receivable, net |
162,020 |
142,703 |
143,900 |
Amounts receivable from
suppliers |
69,545 |
69,034 |
69,311 |
Inventory |
2,527,982 |
2,397,042 |
2,554,789 |
Other current assets |
40,928 |
40,663 |
48,418 |
Total current assets |
3,274,121 |
3,161,273 |
3,066,978 |
|
|
|
|
Property and equipment, at cost |
4,080,350 |
3,676,061 |
3,993,509 |
Less: accumulated depreciation and
amortization |
1,381,502 |
1,212,962 |
1,334,949 |
Net property and equipment |
2,698,848 |
2,463,099 |
2,658,560 |
|
|
|
|
Notes receivable, less current portion |
12,414 |
12,165 |
13,349 |
Goodwill |
756,384 |
756,225 |
756,384 |
Other assets, net |
43,943 |
37,011 |
45,030 |
Total assets |
$ 6,785,710 |
$ 6,429,773 |
$ 6,540,301 |
|
|
|
|
Liabilities and shareholders'
equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ 2,470,749 |
$ 2,160,897 |
$ 2,417,167 |
Self-insurance reserves |
67,676 |
68,625 |
64,882 |
Accrued payroll |
75,059 |
64,473 |
78,442 |
Accrued benefits and
withholdings |
42,413 |
42,405 |
62,946 |
Deferred income taxes |
16,651 |
21,977 |
17,258 |
Income taxes payable |
78,939 |
51,971 |
— |
Other current liabilities |
200,888 |
187,428 |
189,836 |
Current portion of long-term
debt |
6 |
74 |
25 |
Total current liabilities |
2,952,381 |
2,597,850 |
2,830,556 |
|
|
|
|
Long-term debt, less current portion |
1,396,741 |
1,396,242 |
1,396,615 |
Deferred income taxes |
81,330 |
75,162 |
85,164 |
Other liabilities |
211,758 |
197,295 |
209,548 |
|
|
|
|
Shareholders' equity: |
|
|
|
Common stock, $0.01 par
value: |
|
|
|
Authorized shares –
245,000,000 |
|
|
|
Issued and outstanding shares
– |
|
|
|
101,347,744 as of March 31,
2015, |
|
|
|
106,303,884 as of March 31,
2014, and |
|
|
|
101,602,935 as of December 31,
2014 |
1,013 |
1,063 |
1,016 |
Additional paid-in capital |
1,234,133 |
1,162,413 |
1,194,929 |
Retained earnings |
908,354 |
999,748 |
822,473 |
Total shareholders' equity |
2,143,500 |
2,163,224 |
2,018,418 |
|
|
|
|
Total liabilities and shareholders'
equity |
$ 6,785,710 |
$ 6,429,773 |
$ 6,540,301 |
Note: The balance sheet at
December 31, 2014, has been derived from the audited
consolidated financial statements at that date, but does not
include all of the information and footnotes required by United
States generally accepted accounting principles for complete
financial statements. |
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(Unaudited) |
(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
|
March
31, |
|
2015 |
2014 |
Sales |
$ 1,901,903 |
$ 1,727,943 |
Cost of goods sold, including warehouse and
distribution expenses |
914,944 |
850,227 |
Gross profit |
986,959 |
877,716 |
|
|
|
Selling, general and administrative
expenses |
636,586 |
590,596 |
Operating income |
350,373 |
287,120 |
|
|
|
Other income (expense): |
|
|
Interest expense |
(14,402) |
(13,409) |
Interest income |
580 |
631 |
Other, net |
1,113 |
618 |
Total other expense |
(12,709) |
(12,160) |
|
|
|
Income before income taxes |
337,664 |
274,960 |
Provision for income taxes |
124,800 |
101,100 |
Net income |
$ 212,864 |
$ 173,860 |
|
|
|
Earnings per share-basic: |
|
|
Earnings per share |
$ 2.09 |
$ 1.64 |
Weighted-average common shares outstanding –
basic |
101,612 |
106,191 |
|
|
|
Earnings per share-assuming dilution: |
|
|
Earnings per share |
$ 2.06 |
$ 1.61 |
Weighted-average common shares outstanding –
assuming dilution |
103,257 |
108,070 |
|
O'REILLY AUTOMOTIVE,
INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
For the Three Months
Ended |
|
March
31, |
|
2015 |
2014 |
Operating activities: |
|
|
Net income |
$ 212,864 |
$ 173,860 |
Adjustments to reconcile net income to net
cash provided by operating activities: |
|
|
Depreciation and amortization
of property, equipment and intangibles |
54,950 |
47,477 |
Amortization of debt discount
and issuance costs |
525 |
520 |
Excess tax benefit from stock
options exercised |
(21,188) |
(17,850) |
Deferred income taxes |
(4,441) |
(3,796) |
Share-based compensation
programs |
5,890 |
5,096 |
Other |
1,355 |
1,526 |
Changes in operating assets and
liabilities: |
|
|
Accounts receivable |
(19,867) |
(13,016) |
Inventory |
26,807 |
(21,994) |
Accounts payable |
53,582 |
104,376 |
Income taxes payable |
117,221 |
69,922 |
Other |
(21,673) |
(572) |
Net cash provided by operating
activities |
406,025 |
345,549 |
|
|
|
Investing activities: |
|
|
Purchases of property and equipment |
(91,140) |
(83,085) |
Proceeds from sale of property and
equipment |
658 |
287 |
Payments received on notes receivable |
935 |
900 |
Net cash used in investing
activities |
(89,547) |
(81,898) |
|
|
|
Financing activities: |
|
|
Principal payments on capital leases |
(19) |
(18) |
Repurchases of common stock |
(134,813) |
(22,067) |
Excess tax benefit from stock options
exercised |
21,188 |
17,850 |
Net proceeds from issuance of common
stock |
20,252 |
21,097 |
Net cash (used in) provided by
financing activities |
(93,392) |
16,862 |
|
|
|
Net increase in cash and cash
equivalents |
223,086 |
280,513 |
Cash and cash equivalents at beginning of the
period |
250,560 |
231,318 |
Cash and cash equivalents at end of the
period |
$ 473,646 |
$ 511,831 |
|
|
|
Supplemental disclosures of cash flow
information: |
|
|
Income taxes paid |
$ 8,675 |
$ 33,331 |
Interest paid, net of capitalized
interest |
23,435 |
22,419 |
|
|
|
|
|
O'REILLY AUTOMOTIVE, INC. AND
SUBSIDIARIES |
|
|
|
|
SELECTED FINANCIAL INFORMATION |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months
Ended |
|
|
|
March
31, |
Adjusted Debt to
EBITDAR: |
|
|
2015 |
2014 |
(In thousands, except adjusted debt to
EBITDAR ratio) |
|
|
|
|
GAAP debt |
|
|
$ 1,396,747 |
$ 1,396,316 |
Add: Letters of credit |
|
|
50,506 |
54,701 |
Discount on senior notes |
|
|
3,259 |
3,764 |
Six-times rent expense |
|
|
1,597,278 |
1,540,488 |
Adjusted debt |
|
|
$ 3,047,790 |
$ 2,995,269 |
|
|
|
|
|
GAAP net income |
|
|
$ 817,186 |
$ 689,823 |
Add: Interest expense |
|
|
54,283 |
51,083 |
Provision for income taxes |
|
|
467,700 |
403,450 |
Depreciation and
amortization |
|
|
201,678 |
186,478 |
Share-based compensation
expense |
|
|
23,889 |
21,221 |
Rent expense |
|
|
266,213 |
256,748 |
EBITDAR |
|
|
$ 1,830,949 |
$ 1,608,803 |
|
|
|
|
|
Adjusted debt to EBITDAR |
|
|
1.66 |
1.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, |
|
|
|
2015 |
2014 |
Selected Balance Sheet
Ratios: |
|
|
|
|
Inventory turnover (1) |
|
|
1.4 |
1.4 |
Inventory turnover, net of payables (2) |
|
|
30.8 |
11.8 |
Average inventory per store (in thousands)
(3) |
|
|
$ 570 |
$ 569 |
Accounts payable to inventory (4) |
|
|
97.7% |
90.1% |
Return on equity (5) |
|
|
39.6% |
33.8% |
Return on assets (6) |
|
|
12.4% |
11.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
|
|
|
March
31, |
|
|
|
2015 |
2014 |
Selected Financial Information (in
thousands): |
|
|
|
|
Capital expenditures |
|
|
$ 91,140 |
$ 83,085 |
Free cash flow (7) |
|
|
314,885 |
262,464 |
Depreciation and amortization |
|
|
54,950 |
47,477 |
Interest expense |
|
|
14,402 |
13,409 |
Rent expense |
|
|
$ 67,938 |
$ 64,753 |
|
|
|
|
|
Store and Team Member
Information: |
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
For the Twelve Months
Ended |
|
March
31, |
March
31, |
|
2015 |
2014 |
2015 |
2014 |
Beginning store count |
4,366 |
4,166 |
4,216 |
4,041 |
New stores opened |
67 |
51 |
223 |
180 |
Stores closed |
— |
(1) |
(6) |
(5) |
Ending store count |
4,433 |
4,216 |
4,433 |
4,216 |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended |
For the Twelve Months
Ended |
|
March
31, |
March
31, |
|
2015 |
2014 |
2015 |
2014 |
Total employment |
69,708 |
64,676 |
|
|
Square footage (in thousands) |
32,101 |
30,454 |
|
|
Sales per weighted-average square foot
(8) |
$ 59.24 |
$ 56.47 |
$ 234.98 |
$ 226.10 |
Sales per weighted-average store (in
thousands) (9) |
$ 429 |
$ 408 |
$ 1,699 |
$ 1,630 |
|
|
|
|
|
|
|
|
|
|
(1) Calculated as cost of goods
sold for the last 12 months divided by average
inventory. Average inventory is calculated as the average of
inventory for the trailing four quarters used in determining the
denominator. |
(2) Calculated as cost of goods
sold for the last 12 months divided by average net
inventory. Average net inventory is calculated as the average
of inventory less accounts payable for the trailing four quarters
used in determining the denominator. |
(3) Calculated as inventory
divided by store count at the end of the reported period. |
(4) Calculated as accounts
payable divided by inventory. |
(5) Calculated as net income for
the last 12 months divided by average total shareholders'
equity. Average total shareholders' equity is calculated as
the average of total shareholders' equity for the trailing four
quarters used in determining the denominator. |
(6) Calculated as net income for
the last 12 months divided by average total assets. Average
total assets is calculated as the average of total assets for the
trailing four quarters used in determining the denominator. |
(7) Calculated as net cash
provided by operating activities less capital expenditures for the
period. |
(8) Calculated as sales less
jobber sales, divided by weighted-average square
footage. Weighted-average square footage is determined by
weighting store square footage based on the approximate dates of
store openings, acquisitions, expansions or closings. |
(9) Calculated as sales less
jobber sales, divided by weighted-average
stores. Weighted-average stores is determined by weighting
stores based on their approximate opening, acquisition or closing
dates. |
CONTACT: Investor & Media Contact
Mark Merz (417) 829-5878
O Reilly Automotive (NASDAQ:ORLY)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
O Reilly Automotive (NASDAQ:ORLY)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024